Predictive Analytics & Business Insights: Practical Uses in eCommerce & Marketing
A/B testing is the best way to optimize the customer experience, select acquisition channels and allocate investments; however, customer segmentation, identification of risk and potential and close monitoring of testing performance are essential components of the strategy. Predictive models can be of great help, as these can identify likely customer shopping behaviors, or they can rank channels based on several factors. These can then be run through tests to determine winning customer experiences. Predictive models can be simple and easy to implement, as in macro investment allocation; they can also be elaborated as in deeper customer segmentation.